Report
Understanding the impact of increased cost of living on gambling behaviour - Final report
Gambling Commission's research report with Yonder into the behaviours and motivations of gamblers during the current period of high cost of living in Great Britain.
Contents
- Introduction
- Methodology
- How to read this report
- Summary of findings
- Personal finances and cost of living
- Financial comfort and concerns around cost of living
- Relationship with gambling
- Impact of cost of living on gambling behaviours
- Gambling has stayed the same
- Gambling because it’s fun but will make cutbacks if needed
- Gambling is an inherent part of life
- Change in gambling behaviour
- The number of occasions on which you have spent money on these gambling activities
- The amount of money spent on these gambling activities
- The amount of time spent gambling on these activities
- Typical stakes
- Motivations for gambling
- Conclusions
- Appendix A - Gambling activities
- Appendix B - Reading longitudinal tables
- Appendix C - Motivations for gambling – subgroup analysis by statement
Personal finances and cost of living
Qualitatively, the gamblers spoken to reported feeling confident in their budgeting skills. Whilst there were gamblers that recognised their impulses made them more ‘spenders’, they consistently reported having self-awareness of this and also of the impact of not being in control of their spending.
Gambleers reported using a variety of methods to help manage their finances, ranging from casual monitoring to detailed calculations. The amount of time, attention and effort given to monitoring their finances is not necessarily reflective of their income but instead due to the influence of previous experiences and personal outlooks.
"I'm quite old fashioned and so is my dad. He's got a book that he keeps for all his accounts. He would record every single thing that comes off his bank statement, so I started doing that too, rather than looking on my phone online." – Male, decreased Problem Gambling Severity Index (PGSI) score .
"We have a joint account, which we both contribute an equal amount per month, work out how much we need to spend. And then calculate how much we need to put in. So that covers our basic kind of utilities, kind of, yeah, health insurance, certain gas, electricity, TV, etc, broadband." – Male, decreased gambling activity from wave 1 to wave 3.
Regardless of approach and attitude to spending and saving, there was consistency in what gamblers were prioritising their spending on. Highest priority was given to mortgage and rent payments, and gamblers were pragmatic about the fact that outgoings related to housing and childcare are typically larger outgoings and also have the least room for negotiation in their amounts. Groceries and other household items (such as toiletries and pet food) are similarly ‘high priority’, however, there is recognition that they offer more flexibility in terms of deals and offers to save money on.
"I need to prioritise my mortgage, my spending in terms of my groceries, and my utilities - water, gas, electricity, etc. So those are my priority bills, and entertainment comes after." - Male, decreased gambling activity from Wave 1 to Wave 3.
Gamblers in the sample reported feeling the increases in cost of living across the board but the amount of impact was felt to vary depending upon income.
Low-income individuals making substantial lifestyle changes
The day-to-day lives of these individuals have noticeably changed. They have been unable to have the heating on as much as they would like or have switched to pay-as-you-go meters. Their usage of their cars has decreased and they are now more reliant upon car shares and public transport due to the cost of fuel. They may also have had to source several means of income, both through additional waged jobs but also through selling on Vinted or e-Bay.
The ‘squeezed middle’
This group have made small adjustments and cutbacks to their day-to-day lives without any significant disruption. Examples include buying supermarket own brands rather than premium when grocery shopping, shopping at cheaper supermarkets such as Aldi and Lidl and doing more batch cooking, so that their grocery shopping stretches a bit further. Whilst they continue to eat out and get takeaways, the frequency has decreased, and they are more selective in when and where they do go.
High income individuals
These individuals tend to have secure and/or high incomes and whilst aware of the increases in cost of living, have not needed to make significant practical changes. Whilst they feel more aware of their spending choices and may make adjustments if they feel the urge, they are largely unaffected in their day-to-day life.
Within these three categories, those on a low income and the ‘squeezed middle’ are most impacted when it comes to unexpected outgoings and calendar events. Unexpected bills such as as car repairs and vet bills are considered to be hard to budget for, as they are not only expensive, but are also unavoidable. These types of unexpected expenses can act as a trigger to those who are most financially vulnerable to act in ways which they would not necessarily do if they weren’t under extreme stress and pressure.
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Cost of living on gambling behaviour 2024: Financial comfort and concerns around cost of living
Last updated: 27 February 2024
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